The stake of Tanzanian gold magnate Ketan Patel in Shanta Gold Limited has dropped in value by $897,456 (£646,400) since the start of June.
Shares in the East Africa-focused gold producer and explorer on the London Stock Exchange (LSE) surged by 45 percent between April 1 and June 1.
The surge in the value of the company’s shares followed a disclosure that it expects gold production to increase throughout 2021, with Q1 delivering 45 percent of the output. Billionaires.Africa previously reported that Patel’s stake in Shanta Gold gained $3.14 million (£2.21 million) between April 1 and June 1.
However, recent profit-taking activities among investors led the gold producer’s share price to decline by 8.5 percent on the London bourse in 27 days, as some wary investors held back their profits.
Since June 1, the share price has declined from $0.24 (£0.17) to $0.216 (£0.155) as of press time, 5:30 pm (UTC+1), on June 28.
The company also declared that it produced 14,641 ounces of gold in Q1 2021. This is 29-percent lower than the 20,622 ounces it delivered in Q4 2020.
This decline has accrued losses for investors and key shareholders like Patel, who has not sold shares since June 1, as its market capitalization has now lost $21.24 million (£15.30 million) of its value in 27 days.
As of press time, the company’s market capitalization was valued at $226.11 million (£162.86 million).
Patel, who founded the gold mining company in 2001, holds 44,274,017 ordinary shares, which amounts to 4.22 percent of Shanta Gold.
Since June 1, the market value of his stake in the company has declined from $10.45 million (£7.53 million) to $9.55 million (£6.88 million) as of press time. This translates to a loss of $897,456 (£646,400) for the businessman in 27 days.
